Hi everyone.
I'm hoping someone can give my wife and I some guidance on what we should be doing with our money. I understand that we might get a lot of different suggestions (or none) but figured some input from the broader community is likely to be better than our current, haphazard approach. I want to also preface this with an acknowledgement that we are both very fortunate to be well compensated to do jobs that we both enjoy.
Current situation:
Combined income: $250k pretax --> $11400 monthly take home (both maxing retirement contributions)
Mortgage: $4400 per month. We are two years into a 30 year mortgage with about $735k remaining (house value ~1 milion)
Retirement accounts:
401K: $130k in a life cycle 2050, $88k in low cost index funds
Roth IRA: $9,300
Investments: $94k S&P, $30k international, illiquid $50k asset that gives about 8% per year
Other: Checking: $82k, savings: $108k
I feel like our asset allocation is all a little off. I think we have far too much money sitting in our checking and savings accounts. Given our current asset allocation, I am not really sure what to put it in to: should we just put more into broad ETFs? Should we aim to diversify more? If we are just dumping it into the market, is there an optimal phase-in approach such as buy every month for the next 5 months, etc?
My instinct is that we should keep ~$20k in a high-yield savings account, $10k in checking and invest the remainder in some combination of S&P, Nasdaq and Russell ETFs although I imagine we should probably put some into a bond ETF (it is less clear to me how those work -- do they do government bonds/corporate bonds?). I'm thinking we should probably put maybe 20% every month for the next 5 months although i also recognize that we are fairly young so trying to smooth risk on the buy price might be overkill.
Thanks for any advice!
The Abysmal Abyssinian Hornbill
Submitted March 14, 2019 at 09:50PM by AbyssinianHornbill https://ift.tt/2u7g8oK
